Leasing & Property Management term

Implied Warranty of Habitability

A landlord's legal obligation to keep rental property safe, sanitary, and fit for human habitation.

Why Implied Warranty of Habitability matters on the exam

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Exam questions using Implied Warranty of Habitability

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A 'legal description' of the property is typically required in a real estate sales contract primarily to:

  1. Identify the property being conveyed with certainty
  2. Satisfy consideration requirements
  3. Establish the buyer's legal capacity
  4. Create an implied warranty of habitability
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Identify the property being conveyed with certainty — A definite, unambiguous description of the property is needed so the subject matter of the contract is clearly identified, which courts require in order to enforce the agreement.

Source: PSI National Real Estate Exam Content Outline §7 Contracts

The implied warranty of habitability requires a residential landlord to:

  1. Maintain the premises in a condition fit for basic human habitation, such as working plumbing and heat
  2. Provide luxury amenities to every tenant, such as a pool or a fitness center
  3. Guarantee the tenant a reserved parking space for the lease term
  4. Remodel the unit to the tenant's specifications whenever such a request is made
Show answer & explanation

Maintain the premises in a condition fit for basic human habitation, such as working plumbing and heat — The implied warranty of habitability obligates a residential landlord to keep the premises in a condition that meets basic living and safety standards, regardless of what the written lease says.

Source: PSI National Real Estate Exam Content Outline §8 Leasing & Property Management

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